Malaysia’s headline inflation rose 1.6% year-on-year in January 2026, with the consumer price index (CPI) increasing to 135.7 from 133.6 in the same month last year, according to the latest data released by the Department of Statistics Malaysia (DOSM).
The increase was driven by higher prices in several key consumer groups, although moderating trends in others helped contain overall inflationary pressures.
Personal care, education lead price increases
Four major groups recorded stronger price growth compared with December 2025. Personal Care, Social Protection & Miscellaneous Goods & Services rose 6.6% year-on-year, followed by Education (3.2%), Housing, Water, Electricity, Gas & Other Fuels (1.2%), and Recreation, Sport & Culture (0.9%).
Alcoholic Beverages & Tobacco (2.5%) and Food & Beverages (1.5%) maintained the same rate of increase as recorded in December.
However, slower price growth in Insurance & Financial Services (5.5%), Restaurant & Accommodation Services (3.0%), Health (1.4%), Information & Communication (0.7%), and Furnishings, Household Equipment & Routine Household Maintenance (0.2%) helped offset stronger inflationary pressures.
Clothing & Footwear prices remained unchanged compared to a year earlier, while the Transport group registered a decline of 0.7%, reversing from a 0.1% increase in December.
Johor, Negeri Sembilan, Pahang exceed national rate
At the state level, Johor recorded the highest inflation rate at 2.1%, followed by Negeri Sembilan (2.0%) and Pahang (1.9%), all exceeding the national average of 1.6%.
The remaining 13 states recorded inflation rates at or below the national level, with Kelantan posting the lowest at 0.3%.
For the Food & Beverages category, all states except Kelantan (-0.3%) registered price increases. Five states saw food inflation above the national rate of 1.5%, led by Negeri Sembilan (3.2%), followed by Pahang (2.6%), Johor (2.5%), Wilayah Persekutuan Kuala Lumpur (2.0%) and Melaka (1.7%).
Month-on-month inflation moderates
On a month-on-month basis, headline inflation rose 0.1% in January, slower than the 0.3% increase recorded in December 2025.
The largest monthly increases were seen in Personal Care, Social Protection & Miscellaneous Goods & Services (1.0%), Education (0.7%), Housing, Water, Electricity, Gas & Other Fuels (0.3%), Restaurant & Accommodation Services (0.3%), and Recreation, Sport & Culture (0.2%).
Meanwhile, Transport declined 0.4% compared with December, while Furnishings and Information & Communication each fell 0.1%.
Regional comparison
Compared with selected regional economies, Malaysia’s January inflation rate of 1.6% was lower than Indonesia (3.6%), Vietnam (2.5%), and the Republic of Korea (2.0%), but higher than Thailand, which recorded deflation of 0.7%.
The relatively moderate inflation reading suggests that while price pressures persist in certain sectors, overall consumer price growth remains contained heading into 2026.
